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Tag: BoI

  • NASME praises BoI over review of loan processes

    The Nigerian Association of Small and Medium Enterprises (NASME) has lauded the Bank of Industry (BoI) over its effort to review and simplify loan processes for SME operators.

    The umbrella advocacy body for all registered Small and Medium Enterprises (SMEs) in the country led by its National Deputy President, Prince Orimadegun Agboade, said with the intervention, time has really come for the full emancipation of the MSME sector of the Nigerian economy.

    Receiving members of the association at the bank’s office in Lagos, the Managing Director of BoI, Rasheed Olaoluwa, assured them that BoI will increase the tempo and pace of support to MSMEs across the country and accelerate the credit delivery process.

    “In order to ensure that our forms are not cumbersome in any way, we will like to simplify the process so that we can get to a decision point very quickly. A credit committee has been set up to look into the processing fees excluding the legal fees, all other fees including management fees will be reviewed downwards,” he said.

    The BoI boss also informed them that the development of MSMEs in Nigeria was one of the core activities of the BoI and that no stone will be left unturned to ensure that MSMEs are adequately supported to flourish. “We are also looking at the possibility of establishing BoI in every state but we will give priority to the 18 states that have existing Memorandum of Understanding MoU with us. This is the first of many meetings to come and we believe that our SMEs shall grow by contributing more to Nigeria’s GDP and help create millions of jobs for our teeming youths,” he said.

    He approved a quarterly feedback session between NASME and BoI to review actions that will help advance the activities of members of the SME community in the country. Olaoluwa also disclosed that BoI was seeking to partner SME-friendly banks that will complement BoI’s long term fixed assets loans with short term working capital loans for SMEs. He informed the association that proposals have been called for from interested organisations to serve as Business Service Support Firms (BSFs) to BoI who will be shortlisted on a national level. The idea being to improve the quality of loans applications submitted by MSMEs.

    “The BSFs will receive applications from SMEs, look at it and then help them to repackage the applications so that by the time it gets to BoI it would have met the criteria of a bankable application. The value they would be adding to the process is that the chances for successful loan applications will be higher,” he said.

    In his response Agboade thanked BoI for giving support to MSMEs in the country and pledged that the members will do everything possible in utilising the opportunity being availed them by the bank. “We are eagerly looking forward to see the simplification of loan processes because most of our members get confused when they see the long list of requirements on loan application forms.

  • BoI seeks new funding windows to drive industrialisation

    BoI seeks new funding windows to drive industrialisation

    The Bank of Industry (BoI) said it will seek additional funding sources so as to make sufficient impact in line with the Federal Government’s industrialisation effort.

    Its Managing Director, Rasheed Olaoluwa, who spoke over the weekend, said the bank, in alignment with the Nigerian Industrial Revolution Plan (NIRP), will direct its funding  to support agro-allied industries, oil and gas, energy , solid minerals and manufacturing.

    He said: “Although we are confident that our key shareholders , that is Ministry of Finance Incorporated (MoFI) and the Central Bank of Nigeria (CBN), will continue to support us with some equity injection. We take cognizance of the fact that there is a lot of demand on government’s resources.”

    Olaoluwa said all hands must be on deck towards ensuring that BoI strengthens its operations for global competitiveness and be at par with some of the world’s leading development finance institutions.

    He stated that the task of increasing the contribution of the manufacturing sector to the Gross Domestic Product (GDP) cannot be achieved by the bank alone.

    According to the CEO, for the bank to effectively deliver on its mandate, the institution will have to work closely with other relevant stakeholders towards addressing the non-financial issues facing the manufacturing sector and Micro Small and Medium Enterprises (MSMEs).

    Olaoluwa said the bank is developing strategies to improve stakeholders’ access to funds.

    He said: “BoI is trying to achieve a balance in its functions as a development finance institution in terms of delivering social impact and maintaining a sustainable loan infrastructure.

    “Although we are confident that key shareholders in the NIRP initiative Ministry of Finance Incorporated and the CBN, will continue to support the bank with some equity injection, considering the fact that there is a lot of demand on government’s resources.

    “Consequently we are exploring alternative modes of funding such as continuation of sector specific intervention funds by the CBN, Ministry of Agriculture, Solid Minerals and others; managed funds from various state governments and foundations; long-term loans at very low interest rates from multi-lateral/international development institutions.”

    He further said BoI will explore domestic and international bond issuance and other sustainable annuity sources that may become statutorily imperative in the medium to long term.

    According to him,  in pursuance of the success of President Goodluck Jonathan’s Transformation Agenda, a major focal point of the bank was to help promote employment generation and wealth creation through access to development funds.

    “We have met with Business Support Firms (BSFs) to address the large percentage of substandard loan applications as we have discovered that a good way out is to engage with BSFs who will receive the applications and help review them as they better understand how a bankable proposal should look like,” he said.

    He said the SMEs sector will receive adequate attention from the development bank and their funding challenges addressed not through talk but with concrete and visible steps.

    “As you are aware, our Minsiter of Industry Trade and Investment, Dr. Olusegun Aganga, is leading the efforts to industrialise Nigeria and to create millions of jobs in the process. At BoI, we’re passionate about these objectives,” he said.

    He said he had also met and discussed with the Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina on issues relating to the various agricultural development funds managed by BoI as part of the minister’s efforts to transform the agricultural sector.

  • Osun to establish first Automotive Institute

     ….sponsors 30 for training in Germany

    In its continued quest to make life more meaningful for the citizens, create more job opportunities for youths and enhance their capacities the Osun State Government has almost concluded plans to establish an Automotive Mechatronics Specialist Institute christened “Bola Ige Mechatronics Institute (BIMI).

    In a statement by the Director, Bureau of Communications and Strategy, Office of the Governor, Mr. Semiu Okanlawon, the institute, to be sited at the Osun State College of Technolgy, Esa Oke when completed, will be the first in Nigeria.

    He pointed out that the institute will deal with the latest technology involved in modern vehicles, which consist of combined electro-mechanical systems with fully automated controls termed “mechatronics” that reduce use of kilos of wires making way for light weight and greater efficient vehicles.

    The statement also revealed that the state has concluded arrangement to send 30 indigenes of the state to Germany to master the technology.

    The governor’s spokesperson added that fund for the project is an intervention soft loan provision by the National Automotive Council using part of its Auto Development Fund Loan Scheme domiciled with the Bank of Industry (BOI).

    He said, “Osun is the first of all States and Federal Institutions to establish this world-class Automotive Skill-gap Bridge in Nigeria meant for promoting skills needed for employability of our graduates, technicians and improvement for artisans in the sector.?

    “End-user training and associated maintenance support for two years was integrated to allow Osun workers master the repairs and routine maintenance under a leadership understudy scheme.

    “Following due process, advertisement was placed to attract qualified automotive, mechanical and electrical engineers and technicians who were tested/recruited and shall be going for a two-month in-plant, end-user training at LN, Germany from 5th May to 30th June, 2014 before returning to participate in the installation and commissioning at Esa-Oke.”

    Okanlawon added that the local experts after the completion of their training in Germany will, in turn, serve as train-the-trainers to train other Nigerians at Esa-Oke.

    He emphasised that the exercise is purely a practical delivery project as trainees shall be tested and certified before graduation from the centre.

    He added, “We plan to offer through the National Board for Technical Education (NBTE) and National Universities Commission (NUC) approval for the upgrade of the Polytechnic syllabus, a degree course on Auto Mechatronics using the facilities in future.”

     

  • BoI urged to set target for SMEs growth

    The Bank of Industry (BoI) has been urged to set  a yearly target of increasing the number of small businesses.

    In a congratulatory message to BoI Managing Director, Mr. Rasheed Olaoluwa, the President, Association of Micro Entrepreneurs of Nigeria (AMEN), Prince Saviour Iche, described small businesses as the backbone of the economy.

    Individually, he said, small businesses may not have a large impact, but collectively, they are a major driver of job creation.

    He explained that retaining and growing early-stage and existing businesses was the most effective way of supporting entrepreneurs and economic growth.

    To achieve this  goal, Iche said  the bank should be ready to support  small businesses to access capital, adding that the high failure rate of small businesses – especially early-stage start-ups – demonstrates a need for more investments in their long-term success.

    To leave a legacy, the AMEN chief said the bank should look at their services through small business owners and determine how to improve their experiences. While entrepreneurs develop new businesses, he said the government should encourage their growth through logical, but not excessive, regulation.

    He explained that a supportive small business system connects entrepreneurs to technical assistance, streamlined regulations, industry-related resources, mentorship, funding opportunities and other tools.

    The challenges faced by self-employed business owners, he explained, revolve around ensuring the survival of the business as well as the ability to develop assets and build a marketing strategy.

    He said AMEN was ready to provide training for new entrepreneurs, and support the 774 local governments to establish local business incubators in their domains by offering support  to small businesses.

    Iche said local governments can help the economy by establishing incubator spaces, which are shared working spaces made available at low or no cost to entrepreneurs working on start-up projects.

    In addition to providing affordable office space, where start-ups can grow, incubators also provide access to business mentors, potential investors and other networking opportunities that help an early-stage business to scale up. At the same time, incubators deliver trainings and seminars designed to help enhance the skill sets of business owners and strengthen their business plans.

  • BoI to improve on service delivery, says new MD

    The Bank of Industry (BoI) will improve on its service delivery to enable it create wealth and jobs, its new Managing Director, Mr Rasheed Olaoluwa, has said.

    In a statement, Mrs Hadiza Olaosebikan of the Media Unit of the bank, quoted  Olaoluwa as making the promise when the former Acting Managing Director, Mr Waheed Olagunju, handed over to him at BoI’s head office in Lagos.

    It said the former Acting MD, alongside other members of the bank’s Executive Management Committee, received the new helmsman.

    Olaoluwa said: “Urgent steps will  be taken to improve on BoI’s service delivery to enable it meet the unemployment challenges facing the country, especially in the areas of wealth and job creation.’’

    The new managing director solicited the cooperation of the bank’s management team to strengthen the bank’s operations for global competitiveness.

    Olaoluwa also  said the management and staff would ensure that the bank was at par with other leading development finance institutions.

    He said the task of increasing the contribution of the manufacturing sector to Nigeria’s Gross Domestic Product (GDP) could not be undertaken by BoI alone.

  • ITF, SMEDAN, BoI to train, fund  youths

    The Director-General, Industrial Training Fund (ITF), Prof Sambo Longmas Wapmuk has said the agency is partnering the Small and Medium Scale Enterprise Agency of Nigeria (SMEDAN) and the Bank of Industry (BoI) to train youths in skills acquisition and provide funding for them after graduation.

    According to him, at the end of the three-month training, they will be handed over to SMEDAN, which will teach them how to access funding from the BoI.

    Wapmuk, who spoke during the presentation of an award to him by a group in Abuja, said ITF is expected to provide skilled manpower for the economy.

    He said: “The National Enterprise Development Programme (NEDEP) is part of industrial revolution plan, thereby charging ITF with the responsibility of providing skill manpower for the economy. The steady growth of the economy depends strongly on constant skills acquisition by the nation’s youths.

    “The ITF has been directed by the Minister of Trade and Investment Mr. OlusegunAganga to carry out skill gap survey, so skills that are lacking can be set up. ITF has started the survey with UNIDO; this partnership has identified the instruments to be used. The only challenge now is making funds available for UNIDO, Bureau of Statistics, and other stakeholders involved.

    “Trainig is on going in five trade areas. It is ongoing in Lagos, Lokoja, Abuja and Kano. ITF is embarking on the second phase of the training. NEDEP is seeking to involve all states of the federation, in the past it was disjointed. By the middle of 2014 ITF should set up skills council in all states of the federation.”

    On the award given to him, he said he has been able to carry his management staff along, and that the foundation giving the award must have seen sincerity in him before giving him the award

  • Reps probe N300b power, aviation fund

    Reps probe N300b power, aviation fund

    House of Representatives is concerned over the manner with which the N300billion Power and Aviation Intervention Fund (PAIF) is fast dwindling, Speaker Aminu Tambuwal said yesterday.

    He said it was regrettable that the fund, established by the Central Bank of Nigeria (CBN), had shrunk from N300billion to N100billion.

    Tambuwal assured that the ad hoc committee on the disbursement of public funds by the Bank of Industry (BOI), mandated to find out how the fund was being disbursed, would do a thorough job.

    The Speaker noted that it was the responsibility of the legislature to ensure that the public funds were not subjected to waste or corruption.

    He said: “We will devote attention to situations where the actions of government or any of its agencies infringe on the constitution. By some accounts, the volume of this fund, which originally amounted to about N300billion, has dwindled to less than N100billion.

    “Officials claim that over N200billion has been disbursed through deposit money banks to certain individuals and corporate organisations without following due process.

    “You will agree with me that we have a serious issue here, which falls within the precincts of the constitutional mandate given to the National Assembly that revenues belonging to the federation must be paid into the consolidated revenue fund. Withdrawals therein shall only be carried out solely upon the authority of an Act of the National Assembly.

    “It is the mandate of the legislature to ensure that where funds are so authorised to be withdrawn, they are not subjected to waste, corruption, or inefficiency. Section 88 of the 1999 constitution makes it mandatory for the National Assembly to protect the interest of the citizens and the tax payers, with respect to the use of public funds.”

    According to the Speaker, the National Assembly should not be ignored on its resolve to use the instrumentality of the constitution to correct the anomaly.

    “In this vein, we shall not hesitate to recommend appropriate sanctions where any such violation has been deemed to have occurred. However, we shall not pursue every rumour of misdeed or subject government officials to unnecessary harassment either,” he said.

    Yakubu Dogara, who chairs the ad hoc committee, said agitation from quarters that the disbursement of the fund did not follow due process, was responsible for the investigation.

    “In this process, specialised views and expert opinions are sought in a way that fully erases all time-inconsistencies as well as making-up for informed dynamics and complexities, which occur as a result of changing times,” he added.

     

  • GE,BOI sign MoU to support MSMEs with $500m

    GE,BOI sign MoU to support MSMEs with $500m

    General Electrical (GE), a leading infrastructure and technology company, and Bank of Industry (BOI) have announced plans to support small and medium enterprises (SMEs) in Nigeria in the infrastructure sector.

    This is contained in a statement issued in Abuja on Friday by the company’s Corporate Communications Manager, West Africa, Mr Osagie Ogunbor.

    According to the statement, the plan will see funding support to the tune of 500 million dollars made available to critical sectors of the economy like healthcare, power and transportation.

    It added that these sectors would have access to financing for equipment and service contracts as well as management and technical training over a period of at least five year.

    Speaking at a briefing, the Managing Director of BOI, Ms Evelyn Oputu, said that the initiative was intended to support the establishment, modernisation and expansion of high technology SMEs.

    She said that the initiative would also provide the companies with more competitive platform to recruit and retain highly skilled Nigerians currently with leading organisations outside the country.

     

  • BOI to begin disbursement of AfDB $500 million fund soon

    BOI to begin disbursement of AfDB $500 million fund soon

    The Bank of Industry (BOI) at the weekend announced that it would soon commence the disbursement of the African Development Bank’s 500 million dollars fund to industrialists in Nigeria.

    The Chairman of the bank’s Shareholders Committee, Mr Muhammed Dikwa, announced the plan at the 53rd Annual General Meeting of the bank in Abuja.

    Dikwa said that the Federal Government facilitated the acquisition of the fund in order to deepen the bank’s credit delivery process and funding of the industrial sector at concessionary rates.

    “As soon as BOI complies with the disbursement process which has reached an advanced stage, the Nigeria industrialists will start benefiting from the incentive-backed facility,” he said.

    Aside from the AfDB’s funds, he said that there were other existing development fund initiatives under the bank’s management, including the five billion naira BOI/Dangote Small-Scale Businesses Development Fund.

    Other available funds are N100 billion Cotton, Textile and Garment (CTG) Fund, National Automotive Council (NAC) Fund, NFRA Rice Processing Intervention Fund, Cement Fund, Dikwa said.

    He added that Cottage Industries Fund and Small-Scale Processing Fund and National Sugar Development Fund were also available.

    Dikwa also stated that the bank recorded increment in fund disbursement by five per cent from N218.8 billion in 2011 to N229.18 billion in 2012 and that the number of beneficiaries also increased from 498 in 2011 to 534 in 2012.

    According to him, BOI’s schemes have generated indirect employment with the cumulative turnover of the obligators increasing from N503.17 billion per annum before intervention, to N659.15 billion after.

    “Direct employment by beneficiaries increased from an average of 62,097 before intervention to 76, 581 after intervention, representing an increase of 23 per cent,” he said.

    The chairman also said that total fund disbursed under the N300-billion Power and Aviation Fund (PAIF) increased by 23 per cent from N147 billion in 2011 to N181 billion in 2012.

    He claimed that the beneficiaries under the PAIF scheme had been able to increase their investments in assets and revenue base as a result of lower obligations that they were given on the loan.

    “The PAIF scheme has helped in promoting the development of long-term bank credits for infrastructure financing and institutional capacity building for financing power projects within the banking sector,” he said.

  • Aganga raises panels on auto policy

    Aganga raises panels on auto policy

    Minister of Industry, Trade and Investment Olusegun Aganga has constituted two standing committees to ensure a seamless implementation of the National Automotive Industry Development Plan (NAIDP).

    According to a statement by Mr Bello Rasheed, the Principal Executive Officer, Information, the committees are the Automotive Industry Policy Implementation and Monitoring Committee with members drawn from broad-based industry stakeholders.

    They include the Nigerian Automotive Manufacturers/Assemblers Association, the Automobile Local Content Manufacturers Association (ALCMAN) and the Automotive Dealers Group of the National Association of Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA).

    Others were the Nigeria Customs Service; the Federal Ministry of Industry, Trade and Investment; the Federal Ministry of Finance; the Standards Organisation of Nigeria (SON) and the Consumer Protection Council (CPC).

    The Implementation and Monitoring Committee are the Directorate of Road Traffic Administration (DRTA); Automobile Franchise Holders such as Mercedez Benz, Kia, Suzuki, CFAO, Toyota, Volvo, Globe Motors, Dana, Balyn Motors, Metropolitan Motors, the Manufacturers Association of Nigeria (MAN), among others.

    The statement names the second as the Inter-Agency Implementation Committee made up of representatives from relevant government Ministries, Departments and Agencies (MDAs) including the Federal Ministries of Power, Solid Minerals and Finance.

    Others are the Office of the National Security Adviser (NSA), the Bank of Industry (BOI), the Nigerian Ports Authority (NPA), the Raw Materials Research and Development Council (RMRDC), SON, the National Agency for Science and Engineering Infrastructure (NASENI), among others.

     

    The statement quoted the Director General of NAC, Mr Aminu Jalal, as saying that both committees were to meet quarterly to enable them to progressively monitor and evaluate the implementation stages of the policy.

    According to him, the quarterly meeting is also necessary to ensure that no steam is lost in the implementation momentum of the auto programme, which is a critical component of the Nigerian Industrial Revolution Plan (NIRP) under the Federal Government’s transformation agenda.

    Jalal analysed the rudiments of the five key elements of NAIDP as industrial infrastructure, skills development, standards, investment promotion and market development. (NAN)